{{ searchResult.published_at | date:'d MMMM yyyy' }}

Loading ...
Loading ...

Enter a search term such as “mobile analytics” or browse our content using the filters above.

No_results

That’s not only a poor Scrabble score but we also couldn’t find any results matching “”.
Check your spelling or try broadening your search.

Logo_distressed

Sorry about this, there is a problem with our search at the moment.
Please try again later.

When you go shopping online, most retailers are ready to welcome your business provided that you have one thing: a credit card.

Thanks to the wide availability of credit cards in the Western world, online retail has become a multi-billion dollar business. But how much business are online retailers missing out on from would-be customers who don't have credit cards?

The answer is largely unknown, but for some retailers, it may be significant. Walmart, for instance, says that just 15% of its in-store customers pay with a credit card.

While that doesn't mean that the 85% of transactions that don't involve a credit card in store are conducted by customers without credit cards, or that Walmart's online customer base is the same as its offline customer base, the retail giant isn't taking any chances.

Today, it is launching a Pay with Cash feature that seeks to ensure customers who don't have credit cards can still participate in online commerce. How it works is simple: cash customers shop at Walmart.com as anyone else would and at checkout, they select the Pay with Cash option. At that point, they're given an order number which they can take to a local Walmart within 48 hours to make a cash payment. Once that payment has been made, the order will be processed and shipped.

Citing the fact that just 15% of offline transactions are credit-based, Walmart.com CEO Joel Anderson stated "We definitely think [this] could be a big opportunity." As AllThingsDigital's Tricia Duryee notes, other companies think so too and are trying to cash in on cash-only. One player, PayNearMe, allows retailers to offer their own pay with cash option; customers make their payments at local 7-11 stores.

While not every retailer may have a pressing need to woo cash-only customers, for Walmart, bringing cash-only customers online could prove significant. While Walmart stores carry a lot, the selection on Walmart.com is far greater, and the retailer has been increasingly building smaller stores. If Walmart can eventually introduce its cash customers to Walmart.com, it could be a real shot in the arm for the company's ecommerce venture.

Patricio Robles

Published 26 April, 2012 by Patricio Robles

Patricio Robles is a tech reporter at Econsultancy. Follow him on Twitter.

2401 more posts from this author

Comments (4)

Avatar-blank-50x50

Tenko

So, it looks like we were wrong when we thought it's already all online and credit card related :)

over 4 years ago

Guy Harvey

Guy Harvey, Marketing Consultant - Social Media and Media Relations at Human Factors International

Great move by Walmart. Ecommerce in India uses a similar system as fewer people have credit cards their. An increasing number of people are abandoning credit cards though many people replace them with debit cards.

over 4 years ago

Guy Harvey

Guy Harvey, Marketing Consultant - Social Media and Media Relations at Human Factors International

Flipkart is a leading ecommerce site in India that uses COD. P.S. I meant "there" above. When is Econsultancy going to create an edit comment feature!

over 4 years ago

Guy Harvey

Guy Harvey, Marketing Consultant - Social Media and Media Relations at Human Factors International

Great move by Walmart. Ecommerce in India uses a similar system as fewer people have credit cards there. An increasing number of people are abandoning credit cards though many people replace them with debit cards.

over 4 years ago

Comment
No-profile-pic
Save or Cancel
Daily_pulse_signup_wide

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Daily Pulse newsletter. Each weekday, you ll receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.